Grieg Seafood Asa · OSL:GSF
Grieg Seafood Asa — Grieg Seafood Asa Ord — Q3 2024 Earnings Presentation
33 slides from Grieg Seafood Asa's earnings presentation, Nov 14, 2024
Slide 1: Q3 2024
Q3 2024 27.11.2024 1
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been produced by Grieg Seafood ASA (“GSF”) exclusively for information purposes and may not be copied, distributed, further disseminated or relied upon for any purpose by any person without our prior written consent. This Presentation contains fo
Slide 3: Agenda
Agenda • HIGHLIGHTS • OPERATIONS • STRATEGY UPDATE • FINANCIALS • OUTLOOK AND SUMMARY • APPENDIX 27.11.2024 Grieg Seafood ASA - Q3 2024 3
Slide 4: Highlights
Highlights • Operational EBIT in the quarter of NOK -175 million (NOK -86 million), equivalent of NOK -9.8 per kg (-7.0 per kg). Operational EBIT from Farming Norway of NOK 69 million while NOK -218 million from BC due to algae blooms and low DO* • All-time high production in Norway and MAB** fully
Slide 5: Operations
OPERATIONS 27.11.2024 Grieg Seafood ASA - Q3 2024 5
Slide 6: GSF Rogaland
GSF Rogaland NOK million Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023 Harvest volume (tonnes GWT) 8,543 2,771 4,783 20,740 23,821 Revenues 605.3 236.3 317.9 1,812.5 2,137.7 • Good seawater production ◦ Efficient utilization of MAB* throughout the quarter and fully utilized at quarter- Operational EBIT
Slide 7: GSF Finnmark
GSF Finnmark NOK million Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023 • Strong seawater production Harvest volume (tonnes GWT) 6,045 3,886 1,354 15,595 14,783 ◦ Harvested 6,045 tonnes (1,000 tonnes above guiding) at 3.6 kg avg harvest weight Revenues 398.7 292.8 76.8 1,141.6 1,210.6 ◦ Biomass rebuilt p
Slide 8: GSF BC
NOK million Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023 GSF BC Harvest volume (tonnes GWT) 3,217 8,615 6,108 12,499 11,644 Revenues 162.5 738.7 500.8 951.9 989.5 • Challenging seawater production gradually improving Operational EBIT -217.8 -41.8 -19.5 -259.3 -46.3 during the quarter Revenue/kg (NOK) 5
Slide 9: GSF Newfoundland
GSF Newfoundland • Good seawater production NOK million Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023 ◦ Commenced harvesting of the second generation in October • Construction of post-smolt facility ongoing according to Harvest volume (tonnes GWT) — — — 5,320 — plan Revenues -3.3 -4.6 — 444.0 — • Expect
Slide 10: Strategy Update
STRATEGY UPDATE 27.11.2024 Grieg Seafood ASA - Q3 2024 10
Slide 11: Post-smolt strategy update
Post-smolt strategy update • Capital-intensive post-smolt construction initiatives ongoing and on track in Rogaland, Finnmark and Newfoundland Smolt and post-smolt initatives • Post-smolt capacity a keystone in harvest growth in the Group 20,000 Annual capacity (tonnes) ◦ Reduces exposure to biologi
Slide 12: Downstream strategy update
Downstream strategy update • Gardermoen VAP, a state-of-the-art processing plant at Oslo Airport Gardermoen • Part of downstream strategy to increase product portfolio through Value-Added Processing (VAP) ◦ Improve utilization of our production ◦ Increased flexibility in farming operations • NOK 130
Slide 13: Financials
FINANCIALS 27.11.2024 Grieg Seafood ASA - Q3 2024 13
Slide 14: Profit & loss
Profit & loss Profit & loss (NOK million) Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023 Harvest volume tonnes GWT 17,806 15,272 12,245 54,153 50,248 Sales revenues 1,460.7 1,520.1 1,163.7 5,270.6 5,081.9 Operational EBIT* -175.0 -34.8 -86.1 82.1 846.7 • Operational EBIT of NOK -175 million (NOK -9.8 per
Slide 15: Net interest-bearing debt
Net interest-bearing debt Capital structure (NOK million) 30.09.2024 Green bond loan 1,393 • Investment in biomass and operational assets contributed to Term loan 1,792 Revolving credit facility 1,300 the increase in NIBD during the quarter, offset by release on Lease liabilities (incl IFRS 16) 1,40
Slide 16: Investments
Investments • Gross investments* in Q3 2024 of NOK 354 million (YTD NOK 946 million) ◦ Growth investments Q3 2024 of NOK 281 million (YTD 723 million) ◦ Maintenance investments Q3 2024 of NOK 73 million (YTD 222 million) • Planned 2024 CapEx of ~ NOK 1,400 million ◦ Maintenance investments ~ NOK 300
Slide 17: Financials summary
Financials summary • Grieg Seafood is working on measures to strengthen the Group's capital structure ◦ Long-term partner for our Canadian operations - process to identify partners is progressing ◦ After the balance sheet date: To maintain financial flexibility, Grieg Seafood ASA has entered into a
Slide 18: Outlook and Summary
OUTLOOK AND SUMMARY 27.11.2024 Grieg Seafood ASA - Q3 2024 18
Slide 19: Outlook
Outlook Sales & Market Guiding Rogaland Finnmark BC NL GSF Group (tonnes GWT) • Expect continued robust salmon market due to Q1 2024 (actuals) 9,400 5,700 700 5,300 21,100 healthy demand and stable supply Q2 2024 (actuals) 2,800 3,900 8,600 — 15,300 • Estimated contract share of 7% of Norwegian harv
Slide 20: Quarterly market development
Quarterly market development Market consumption (tonnes GWT) Q3 2024 Q3 2023 %-change YTD Q3 2024 YTD Q3 2023 %-change EU & UK 330,600 306,500 8% 809,700 764,600 6% USA 148,100 149,600 -1% 423,400 438,200 -3% Brazil 30,200 25,700 18% 86,800 74,200 17% Russia 9,700 19,300 -50% 31,100 45,300 -31% Japa
Slide 21: Summary
Summary • All time high production in Norway and MAB* fully utilized at quarter end - biomass in Finnmark rebuilt post- Spiro • Biological challenges in BC significantly impacted the Group's earnings in Q3, situation stabilized going into Q4 • Search for long-term partners in Canada is progressing •
Slide 22: Upcoming financial results
UPCOMING FINANCIAL RESULTS Financial year 2024 20 February 2025 Quarterly Report - Q4 2024 1 April 2025 Annual Report 2024 Financial year 2025 26 August 2025 Half-year Report - Q2 2025 22 May 2025 Quarterly Report - Q1 2025 13 November 2025 Quarterly Report - Q3 2025 The Company reserves the right t
Slide 23: Appendix Q3 2024
APPENDIX Q3 2024 27.11.2024 Grieg Seafood ASA - Q3 2024 23
Slide 24: Our approach to sustainable business
Our approach to sustainable business Our pillars HEALTHY SUSTAINABLE PROFIT & LOCAL OCEAN FOOD INNOVATION PEOPLE COMMUNITIES Topics • Fish health and welfare • Safe and healthy food • Profitable operations • Human rights • Local value creation • Protecting wild salmon • Sustainable feed • Our market
Slide 25: Spot market price development
Spot market price development NQSALMON/SISALMONI WEEKLY AVERAGE (NOK/KG) 140 130 120 110 100 90 80 70 60 50 40 30 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 2020 2021 2022 2023 2024 The chart graphs weekly average prices for NQSALMON up until week 31/2024, and SISALMONI from week 32/2024. 27
Slide 26: Profit & loss
GRIEG SEAFOOD GROUP NOK 1 000 Q3 2024 Q3 2023 YTD 2024 YTD 2023 Sales revenues 1,460,726 1,163,696 5,270,613 5,081,897 Other income 9,053 -398 21,584 39,513 Share of profit from associates -665 -3,389 6,002 -2,385 Raw materials and consumables used -708,318 -383,162 -2,413,906 -1,751,951 Salaries an
Slide 27: Comprehensive income
GRIEG SEAFOOD GROUP NOK 1 000 Q3 2024 Q3 2023 YTD 2024 YTD 2023 Net profit for the period -30,913 148,309 -1,062,403 12,747 Comprehensive Currency effect on investment in subsidiaries Currency effect on loans to subsidiaries Tax effect 2,112 400 -88 -35,026 -15,217 3,348 15,014 7,067 -1,555 130,542
Slide 28: Financial position - assets
GRIEG SEAFOOD GROUP NOK 1 000 30.09.2024 30.09.2023 31.12.2023 Goodwill 735,954 748,318 727,111 Licenses incl. warranty licenses 1,486,682 1,519,909 1,489,798 Other intangible assets 12,324 13,715 13,275 Property, plant and equipment incl. right-of-use assets 5,755,117 4,808,450 5,095,401 Indemnific
Slide 29: Financial position - equity and liabilities
GRIEG SEAFOOD GROUP NOK 1 000 30.09.2024 30.09.2023 31.12.2023 EQUITY AND LIABILITIES Share capital 453,788 453,788 453,788 Financial Treasury shares -5,255 -5,685 -5,255 Contingent consideration 701,535 701,535 701,535 Retained earnings and other equity 4,280,993 5,010,910 5,519,102 position Total
Slide 30: Cash flow
GRIEG SEAFOOD GROUP NOK 1 000 Q3 2024 Q3 2023 YTD 2024 YTD 2023 EBIT (Earnings before interest and taxes) 168,558 67,802 -748,639 496,214 Depreciation, amortization and write-down 166,865 142,683 481,023 402,649 Gain/loss on sale of property, plant and equipment -51 1,301 -464 826 Share of profit fr
Slide 31: Cash flow
Cash flow Changes in cash and cash equivalents NOK million • Net cash flow from operations NOK 50 million • Operational EBITDA* impacted cash flow by NOK -8 million (NOK 57 366 million in Q3 2023) -8 -2 • Changes in working capital of NOK -2 million, incl. biomass release of NOK 547 million • Net ca
Slide 32: Share information
Share information THE 20 LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA AT NO. OF SHARE- 30.09.2024 SHARES HOLDING Grieg Aqua AS 56,914,355 50.17% Number of shares • 113,447,042 shares incl. treasury shares OM Holding AS 5,180,982 4.57% Ystholmen Felles AS 1,923,197 1.70% Last issues • Q2 2020 - NOK 7 mi
Slide 33: Key metrics and long term targets
Key metrics Long term targets FY 2021 FY 2022 FY 2023 YTD 2024 Harvest volume 120 000-135 000 tonnes 75,601 tonnes 84,697 tonnes 72,015 tonnes 54,153 tonnes NOK 44.1/kg NOK 47.7/kg NOK 62.3/kg NOK 67.5/kg Cost Cost leader in our operating regions CAD 8.8/kg CAD 9.1/kg CAD 11.3/kg CAD 12.5/kg 1 NIBD/
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